To explore the possibility of recognising ZeroLend as a friendly fork of AAVE. As a friendly fork, ZeroLend proposes to give the AAVE community the following:
1% of the governance token (ZERO) supply as an airdrop to AAVE stakers.
10% of the revenue that the protocol generates back to the AAVE treasury for the next 1 year.
Contribution to the Aave community and to the DAO
Introduction:
ZeroLend is a lending protocol focused on layer 2s. It is primarily a fork of Aave V3 but differentiates itself by creating a new incentive mechanism (that is set to launch later this year) and focusing on deploying on various other L2s.
Motivation:
Unlike most of other AAVE forks out there (without naming any of them) that don’t give anything back to the Aave DAO; we’d like to take this step to pro-actively give back to the community and team that have worked hard to make a wonderful protocol for the open source community to use.
Being open-source means that anyone can fork the Aave codebase and frontend interface. But it brings the disadvantage that the forks often steal liquidity, revenue and community members from Aave itself.
However by positioning as a friendly fork and giving a share of the tokenomics and revenue back to the Aave DAO, ZeroLend hopes to set a standard for other forks (especially Aave v2 and Aave v3 forks) and also allows ZeroLend to contribute positively to the Aave ecosystem. If ZeroLend does well, then the Aave DAO gets a share of that as well.
Conculsion:
We’d love to know what the community thinks about this approach and the concept of being a friendly fork.
If the community would like to accept this position, we’d love to run a DAO vote to accept this position and execute on the deliverables above which includes the airdrop to AAVE stakers and a share of revenue back to the DAO.
We are super open to feedback and would love to hear back from contributors . Thanks and regards. Ryker
It may be worth saying out loud what ZeroLend wants out of this. Are you hoping that this arrangement leads to Aave passing on deploying to chains that ZeroLend is on?
No, Aave is more than welcome to deploy to the chains ZeroLend is on tbh. Manta, zkSync, Blast etc etc…
There are key differences between the protocols in terms of incentive design.
The proposal is more so to recognise and thank the efforts done by the Aave team and community in building an open source protocol. That’s all.
I think that being open source has it’s merits (Have been contributing to OS software myself for a long time and a lover of GNU) but also has it’s de-merits in that the original creators in most cases don’t make anything back from it’s derivations.
So this proposal is more so to contribute back in a way we feel is right.
I appreciate that a fork of Aave is considering by themselves to share some of its revenue with us. In the past only Spark proposed something similiar with different metrics.
I checked Zerolend, and from my POV, it’s a low-effort fork done by two and half junior developers who raised a few millions from greedy VCS and gave some angel slots to KOLs influencers to talk about them.
the Aave codebase with a high inflation shitcoin slapped on top, there’s been many in the past like this and many more will come in future.
The reality is that Zerolend only has one likely outcome, onboarding the wrong collateral or Oracle, or pushing a wrong config and getting featured in Rekt News.
Unfortunately, even high-quality code cannot offer much protection if the implementers don’t fully comprehend it.
The only way out of this certain future is having the service providers of this DAO save their ass like we did with other forks in the past and refuse to do now, creating expected outcomes.
If you wish to make a more respectable proposal, it will be given due consideration, especially as Zerolend seems to focus on networks Aave doesn’t have a short-term interest in. The current proposal, however, lacks credibility. The DAO treasury should also receive your tokens.
In the long run, it’s better to have a smaller stake in a sustainable project than to risk everything on a ship that might sink shortly after setting sail.
The allocation of 1% to the Aave Community compared to 30% for Private Sale (VC), 5% for the team, and 7% for Advisors is an undervaluation of the Aave codebase and cannot be recognized ZeroLend as a friendly fork of AAVE.
I believe zerolend should continue payments as long as it keeps using the Aave codebase and generating profits. *Spark is for 2 years.
Please share specifically what contributions you are planning to make.
Based on the above, To be recognized as a friendly fork I guess is too much to ask from the community at the current stage, however we’d still like to give back to Aave community nevertheless.
Furthermore we’d be happy to continue our 10% revenue share commitment for as long as we are using Aave’s codebase and continue to offer 1% of our supply to AAVE stakers even-though the DAO might not recognize us a friendly fork.
Aave and ZL have different interests and yes, ZL (90mn tvl) is a lot smaller than Aave (vs 15bn tbl) and yes we have a focus on a lot newer chains which Aave might not have an interest on.
However, In the future I hope if the situation changes that this discussion can be reconsidered.
Thanks guys for your time. Would be happy to close the thread unless there’s any extra comments to share .
. Thanks and regards. Ryker
